Multiple Choice
In which of the following situations does the internalization theory recommend FDI as opposed to licensing?
A) when the firm has know-how that can be adequately protected by a licensing contract
B) when the firm produces products that have a low value-to-weight ratio
C) when a firm's skills and know-how are amenable to licensing
D) when the firm needs tight control over a foreign entity
Correct Answer:
Verified
Correct Answer:
Verified
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